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AngloGold Ashanti suspends operations at another mine, withdraws guidance

Kitco News

To comply with Brazilian government authorities to restrict non-essential business, AngloGold Ashanti said today its Mineração Serra Grande S.A. will temporarily suspend its operations.

Earlier this week the company lost production at Mponeng after the South African government announced a 21-day nationwide lockdown.

The company said it is also withdrawing its guidance for 2020.

"The company had a good start to the year, and – notwithstanding an anticipated impact of 30,000oz – 40,000 oz from operations that are suspended at this stage (less than 2% of annual production) – AngloGold Ashanti currently remains on track to meet its annual guidance. Nonetheless, given the uncertainties with respect to future developments, including duration, severity and scope of the COVID-19 pandemic and the necessary government responses to limiting its spread, AngloGold Ashanti has decided to withdraw its market guidance at this time," said the company in a news release.

AngloGold Ashanti said it is implementing cash conservation measures.

The company said that the rest of its diversified portfolio of 14 assets in nine countries continue to operate.

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